N2N Connect Bhd (XKLS:0108) Financial Strength: 10 (As of Jun. 2026) — 11% Above Median

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XKLS:0108 N2N Connect Bhd XKLS:0108
41 GF Score
Price RM0.31
GF Value RM0.35
Valuation Modestly Undervalued
! 5 Warning Signs
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What is N2N Connect Bhd Financial Strength?

N2N Connect Bhd XKLS:0108 41 Financial Strength is 10 as of Jun. 2026, which is 11% above its 10-year median of 9.00. GuruFocus rates XKLS:0108 with a GF Score™ of 41/100 and a GF Value™ of RM0.35 (Modestly Undervalued). The stock has 5 warning signs investors should review.

N2N Connect Bhd has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

N2N Connect Bhd shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

N2N Connect Bhd did not have earnings to cover the interest expense. N2N Connect Bhd's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.04. As of today, N2N Connect Bhd's Altman Z-Score is 4.92.


N2N Connect Bhd  (XKLS:0108) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

N2N Connect Bhd has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


N2N Connect Bhd Financial Strength Related Terms


XKLS:0108 vs CRM, SHOP, UBER: Financial Strength Comparison

For the Software - Application subindustry, N2N Connect Bhd's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


N2N Connect Bhd Financial Strength vs Software Industry

For the Software industry and Technology sector, N2N Connect Bhd's Financial Strength distribution charts can be found below:

* The bar in red indicates where N2N Connect Bhd's Financial Strength falls into.


XKLS:0108
41GF Score
N2N Connect Bhd XKLS:0108
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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N2N Connect Bhd Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

N2N Connect Bhd's Interest Expense for the months ended in Jun. 2026 was RM-0.02 Mil. Its Operating Income for the months ended in Jun. 2026 was RM-0.79 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was RM2.11 Mil.

N2N Connect Bhd's Interest Coverage for the quarter that ended in Jun. 2026 is

N2N Connect Bhd did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. N2N Connect Bhd has enough cash to cover all of its debt. Its financial situation is stable.

2. Debt to revenue ratio. The lower, the better.

N2N Connect Bhd's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1.024 + 2.112) / 86.876
=0.04

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

N2N Connect Bhd has a Z-score of 4.92, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.92 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 10 mean?
N2N Connect Bhd (XKLS:0108) has a Financial Strength of 10 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on N2N Connect Bhd and its competitors. This is 11% above median its historical median of 9.00. Over the past decade, N2N Connect Bhd's Financial Strength has ranged from 5.00 to 10.00.
Is N2N Connect Bhd's Financial Strength too high?
N2N Connect Bhd's current Financial Strength of 10 is 11% above median its 10-year median of 9.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 10.00. Overall, N2N Connect Bhd has a GF Score™ of 41/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does N2N Connect Bhd's Financial Strength compare to CRM and SHOP?
N2N Connect Bhd's Financial Strength of 10 can be compared against companies in the Software industry. Historically, N2N Connect Bhd's own Financial Strength has ranged from 5.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Software company?
A good Financial Strength depends on the Software industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on N2N Connect Bhd and its competitors. N2N Connect Bhd's current Financial Strength is 10, which is 11% above median its own 10-year median of 9.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is N2N Connect Bhd stock overvalued right now?
Based on GuruFocus' analysis, N2N Connect Bhd (XKLS:0108) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.35, compared to a current price of RM0.31 — trading 11.4% below its estimated fair value. The current Financial Strength is 10, which is 11% above median its 10-year median of 9.00. N2N Connect Bhd's overall GF Score™ is 41/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For N2N Connect Bhd (XKLS:0108), the current Financial Strength is 10 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is N2N Connect Bhd (XKLS:0108) Overvalued in 2026?

Based on GuruFocus' analysis, N2N Connect Bhd stock appears to be undervalued. The current stock price of RM0.31 is trading 11.4% below its estimated GF Value™ of RM0.35. GuruFocus considers N2N Connect Bhd to be Modestly Undervalued.

Key valuation signals for XKLS:0108:

  • Financial Strength: 10 (11% above median its 10-year median of 9.00)
  • GF Value™: RM0.35 vs. price of RM0.31 (11.4% below fair value)
  • GF Score™: 41/100 with 5 warning signs

No single metric tells the full story. See the XKLS:0108 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


N2N Connect Bhd Business Description

Address Avenue 3 Bangsar South No.8, Jalan Kerinchi, Wisma N2N, Level 9, Tower 2, Kuala Lumpur, MYS, 59200
N2N Connect Bhd is an investment holding company. It is engaged in the research and development of software packages, provider of design, programming, consultancy services and related activities. Its products include TCProGlobal, TCPlus, TCMobile, and TCBOS and services range from online trading portals within the stockbroking industry, hosting and managing network services, to wealth and risk management solutions. It operates in Malaysia, Hong Kong, and other countries and generates the majority of the revenue from Hong Kong.
41GF Score

Get the complete analysis for XKLS:0108

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

RM0.31
Price
RM0.35
GF Value